Regulatory Guidance

Your small business has to comply with numerous local, state and federal laws
and regulations. It is worth your time to research the laws and regulations
carefully - or talk to a business advisor - to avoid penalties and other serious
consequences. US SBA Office of Advocacy statistics show that it costs
the smallest of businesses almost $7,000 per employee every year to comply with
federal regulations. That cost places a burden on small business that is 60
percent greater than costs incurred by large corporations.

Need Help with a Regulatory Issue?

If you are a small business owner in New York, and you need help dealing with
a federal regulatory agency, there is a person you can call. The SBA Advocate
for small business owners in New York State is Teri Coaxum, whose office
is at 26 Federal Plaza in New York City. If you need help with a regulatory
issue, you can reach her by phone at 212-264-7752.

The SBA also has someone in Washington, DC who is looking out for small business
owners. The National
Ombudsman receives complaints and comments from small businesses, and acts
as a "trouble shooter" between them and federal agencies. The National
As an impartial liaison, the Office of the National Ombudsman directs reported regulatory fairness matters to the appropriate agency for high-level fairness review, and works across government to address those concerns, reduce regulatory burdens, and help small businesses succeed..

The SBA Office of Advocacy, which gives small businesses and their representatives
the opportunity to make their voices heard, also lends small business owners
a hand. The Regulatory
Alerts page at the SBA website lists proposed rules that may affect
small business owners, and allows visitors to comment on proposed rules important
to their business.

The resources below provide information on regulations for the following topics:

Permits and Licenses

If you are thinking about starting a business, you should be aware of local
laws. It is important to contact the village, town, or city and county
clerk where the business plans to locate. Examples of local considerations
are zoning, parking, sign regulations, and certain occupational licenses such
as auctioneers, electricians, and plumbers.

The NYS License Center Business Wizard is an interactive website that guides individuals and businesses through the permit and licensing requirements to start or expand a business in New York.

Taxes

Small business owners have to pay taxes, and to eliminate unwelcome surprises,
it is wise to learn about them before you have to pay a penalty. The US Internal
Revenue Service (IRS) has a section on its website for small business owners
and self-employed individuals. There is a lot of information, including an online
classroom, at the site.

To help small business and self-employed customers better understand record keeping
and other tax related issues, the IRS has developed a number of educational
products to help small businesses start and keep their businesses on the right
path. Fact sheets at the Tax
Gap Page address common areas of difficulty for small business owners.

Insurance

Business Insurance: You are not required by law to have liability,
property damage or other types of business insurance, but very few businesses
can realistically operate without some form of optional coverage. Chief among
these is general liability insurance and property insurance. In some situations,
life insurance may also be important. The New York State Department of
Insurance supervises all insurance business in New York State. For more information,
contact the New York State
Department of Financial Services.

The Exchange is an organized marketplace designed to help people shop for and enroll in health insurance coverage. Individuals, families and small businesses will be able to use the Exchange to help them compare commercial insurance options, calculate costs and select coverage online, in person, over the phone or by mail.

Environmental Issues

Your small business probably does not have an environmental manager, consultant
or attorney on staff to interpret complex air quality requirements or to keep
up with regulatory changes and developments in environmental rules.

The US Environmental Protection Agency (US EPA) has an ombudsman to assist small business owners with federal environmental rules.

The EPA Small Business Compliance page leads you to a wide range of resources
that are available to help small businesses learn about environmental rules.

Workplace Safety

The US Department of Labor (DOL) encourages all businesses to establish safety
and health programs, and to find and fix hazards to prevent workplace injuries
and illnesses. The DOL website includes a “Small
Business Resource Center” with a lot of information about federal
rules for small business, including workplace poster requirements.

Workers’ Compensation

If you or an employee is injured on the job, you should contact their state
workers' compensation board. The website of the New
York State Workers' Compensation Board to give businesses quick and direct
access to workers' compensation information.

The Americans with Disabilities Act gives civil rights protections
to individuals with disabilities similar to those provided to individuals on
the basis of race, color, sex, national origin, age, and religion. It guarantees
equal opportunity for individuals with disabilities in public accommodations,
employment, transportation, State and local government services, and telecommunications.
You will want to read the “ADA
Guide for Small Business” (PDF) to learn about the basic requirements
for small businesses that provide products or services to the public.

Wages, Hours and Benefits

Small business owners need clear and easy-to-access information on how to comply
with federal employment laws that relate to wages, health benefits, retirement
security, employment rights. The US Department of Labor provides a shortcut
to the information and services the DOL provides on various labor and employment
topics. Visit the website before you hire employees, and whenever you have a question.

Did you know that in cases where an employee is subject to both the state and
federal minimum wage laws, the employee is entitled to the higher of the two
minimum wages? Learn
more about minimum wage rules.

Providing an employee pension plan can be a powerful recruitment and retention
tool for small-business owners. A pension plan is an employee benefit plan established
or maintained by an employer or by an employee organization (such as a union),
or both, that provides retirement income or defers income until termination
of covered employment or beyond. There are a number of types
of retirement plans, including the 401(k)
plan and the traditional pension plan, known as a defined
benefit plan.

You may want to learn more about ERISA
- The Employee Retirement Income Security Act of 1974 - a federal law that
sets minimum standards for most voluntarily established pension and health plans
in private industry to provide protection for individuals in these plans.

Going Public

When your company needs additional capital, "going public" may be
the right choice, but you should weigh your options carefully. If your company
is in the very early stages of development, it may be better to seek loans from
financial institutions or the Small Business Administration. The Securities
Act requires companies to give investors "full disclosure" of all
"material facts," the facts investors would find important in making
an investment decision. The Act also requires companies to file a registration
statement with the SEC that includes information for investors. Go to the US
Securities and Exchange Commission (SEC) page containing information for
small businesses to learn more about the rules.

Other Links

The SBA Office
of Advocacy is responsible for examining the contributions and challenges
of small businesses in the United States economy. A variety of research reports,
small business statistics, and other documents are available at here.
Recent reports discussed growth and decline trends for small business and the
importance of small startups to state economic growth.

New York Small
Business Development Center
State University of New York
10 North Pearl Street
Albany, NY 12246
In NY State 800-732-SBDC
Outside NY State 518-944-2840

Partnership Program with the SBA, administered
by the State University of New York. Funded in
part through a Cooperative Agreement with the U.S. Small Business
Administration. All opinions,conclusions or recommendations expressed are
those of the author(s) and do not necessarily reflect the views of the SBA. All
SBA funded programs are extended to the public on a nondiscriminatory basis.